Yamaha (7951) investor relations material

Executive summary

• FY 2026.3 revenue increased 0.7% year-over-year to ¥465.3 billion, supported by digital instruments and guitars, but offset by declines in pianos and normalization in pro audio demand, with net profit rising 77.7% to ¥23.7 billion despite weak Chinese and pro audio markets.

• Core operating profit declined 13.2% to ¥31.9 billion due to U.S. tariffs, higher raw material and procurement costs, and a less favorable product mix.

• Structural reforms, price optimization, and cost control measures advanced, but were insufficient to fully offset cost pressures.

• The company is executing a medium-term plan focused on rebuilding competitiveness, evolving business domains, and strengthening management.

• FY 2027.3 outlook anticipates revenue and profit growth across all regions and product categories, with continued investment in new businesses.

Financial highlights

• FY 2026.3 revenue: ¥465.3 billion (+0.7% YoY); core operating profit: ¥31.9 billion (-13.2% YoY, 6.9% margin); net profit: ¥23.7 billion (+77.7% YoY).

• Cash and cash equivalents rose by ¥9.1 billion to ¥109.0 billion at year-end.

• 4Q revenue grew 11.6% YoY to ¥124.3 billion, with core operating profit up 40.9% to ¥6.7 billion.

• Total assets rose 4.4% YoY to ¥617.6 billion; equity attributable to owners of parent increased to ¥478.3 billion.

• Basic earnings per share doubled to ¥52.70 from ¥27.58, reflecting a 3-for-1 stock split.

Outlook and guidance

• FY 2027.3 forecast: revenue ¥490.0 billion (+5.3%), core operating profit ¥38.0 billion (+19.2%, 7.8% margin), net profit ¥28.0 billion (+18.0%), EPS ¥63.65.

• ROE projected at 5.7%, still below cost of equity (6.5%).

• Dividend forecast for FY 2027.3 is ¥26 per share, unchanged from FY 2026.3.

• Revenue growth expected in all product categories and regions, with new product launches and continued market share gains.

• Assumed FX rates: ¥155/USD, ¥180/€; guidance excludes potential US tariff refunds.